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Benchmarking the Credit and Accounts Receivable Functions CRF presents a "Standards" Approach to Performance Improvement
Before you know where you are going, you need to know where you are.
Our survey illustrates important credit and A/R management data among companies and sets forth
Sponsored by Grant Thornton, a world leader in accounting, tax and business advisory services, CRF's Credit and Accounts Receivable Statistical Benchmarking links important credit and A/R management, workload, transaction and cost data among companies; and, portrays a comparative analysis by industry in table format for a multitude of metrics. This CRF report is recognized as the most comprehensive data of its kind.
CRF's benchmarking is the first step in determining where you are today. Our
statistical study can present your data and compare your organization's
performance across:
CRF's valuable data will help you:
For a limited time, any company participating in the survey will receive the full report for their data contribution FREE.
The objective of the Credit Research Foundation in this initiative is three-fold:
CRF's Benchmarking Report The Benchmarking Report is a detailed report customized for each participant. The statistics below are arrived at by comparing an individual company's performance in credit and collection against all companies in the CRF database. Those statistics are then compared to similar companies in the same industry. CRF Metrics calculated are: I. FINANCIAL PERFORMANCE METRICS DSO Best Possible DSO Average Days Delinquent Collection Effectiveness Index Percent Current Percent AR Greater Than 60 Days Percent AR Greater Than 180 Days Gross Bad Debt as % of Sales Bad Debt Recovery as % of Sales Net Bad Debt as % of Sales Deductions as % of AR $ Deductions as % of AR items II. CUSTOMER METRICS Top 10 Customers as % of Sales Top 20 Customers as % of Sales Invoice Size Number of Invoices Per Customer Number of Active Customers Primary Customer Type III. DEDUCTION METRICS Number of Deductions Processed Per Deduction Processing Employee Deduction Processing Costs as % of Sales Deduction Turnover Deductions Salary Per Deductions Employee Deductions as % of Sales Deduction Balances Included in AR Portfolio IV. EFFICIENCY METRICS Various costs per transaction, employee, salary for Credit/Risk, Cash Application, Collections, etc. V. OUTSOURCING METRICS Percent of Workload that is Outsourced for Credit Risk, Cash Application, Collections, Deduction Processing, etc. VI. COST ANALYSIS METRICS Collection expenses Outside Services Outsourcing Travel Occupancy or Rent IT Systems Depreciation/Amortization Total Cost as % of Sales, % of FTE Salary Benefits, Per Customer and Per Employee VII. BUSINESS PRACTICES METRICS % of Companies Charging Late Payment Fee % of Companies that Accept Credit Cards % of Companies Allowing Anticipation Payment Discount % of Late Payment Charges Ultimately Collected Annual $ of Credit Card Sales as % of Sales Electronic Invoicing Electronic Payments Auto Write-off Use of Auto-cash Systems including Auto-cash Hit Rates $ Amount Shipped Automatically to New Customers with No Credit Investigation % of Customers in Highest (Top Third) Risk Category VIII. ORGANIZATIONAL STRUCTURE / RESPONSIBILITIES Reporting Relationships Where Various Functions are Primarily Performed within the Organization Department Responsibilities IX. SYSTEMS INFORMATION AR or ERP Systems Used Use of Bolt-on Deduction Management, Collection Management Systems and Credit Scoring Systems |
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